Banks hike lending rates, EMIs to go up

Christopher Zimmerman

State Bank of India (SBI), the country's largest lender, on Thursday increased marginal cost-based lending rates (MCLR) across all maturities, effective immediately. The new lending rate system is applicable on all home loans, vehicle loans, education loans and personal loans taken after April 2016.

The Delhi-based PNB, which is firefighting the largest financial fraud in the country and staring at a possible loss of around Rs 13,000 crore, has also followed its larger per hiked its one year MCLR rate by 15 bps to 8.30 per cent.

Last time SBI has hiked its MCLR was in April 2016. The SBI raised the interest rate on FDs by 0.50 per cent.

SBI today revised upwards the retail deposit rates for the two years to under 10 years bracket by 0.50 percent to 6.50 percent.

The overnight MCLR rate has been increased from 7.70 percent to 7.80 percent, while the six-month MCLR has been increased from 7.90 percent to 8.00 percent earlier. With MCLR going up, the home loan rates in all probability will also shoot up unless banks reduce the mark-up (margin) in the loans. Banks generally revise MCLR on a monthly basis.

Even in the last policy review early last month, the central bank had sounded more accommodative than hawkish even though it increased its inflation forecast. Auto and education loans are also benchmarked against this rate.

Domestic bulk term deposits between Rs 1 crore and Rs 10 crore, will fetch 6.75% interest for 1 year to 455 days as against 6.25% earlier while deposits between 5 years and 10 years will now earn 6.25% as against 6% earlier.

For the third consecutive time since November, the bank on Wednesday raised its retail and bulk term deposit rates for various maturities by up to 75 basis points.

The move by SBI and PNB will surely lead to other banks increasing their benchmark lending rates.

Senior citizens with deposits of 2 years to 10 years will now get 7% as against 6.50% earlier while for deposits maturing below one year they will earn 6.9% as against 6.75% before.

ZTE Tempo Go debuts as the first Android Go phone with SnapdragonMar 02, 2018 - 06:00
Lastly, the device uses Snapdragon 435 SoC, which is significantly less powerful than the Snapdragon 450 SoC used in the Blade V9. Being an entry-level smartphone, the new ZTE Tempo Go smartphone has a plastic body which lower down the pricing of the device.

Flu season makes impact across ColoradoMar 01, 2018 - 13:34
Officials say that Doctors in Texas are now seeing more of the type B flu and less of type A as the season begins to peak. Also, viruses grown in eggs are also more likely to mutate, which makes it challenging to create a targeted vaccine.

Download Samsung Galaxy S9 Wallpapers - The Official Ones!Mar 01, 2018 - 13:17
Samsung and Apple are long standing rivals in smartphone market and this legacy will continue with Galaxy S9 and iPhone X . This dual system is a major selling point and it certainly offers a superior photography experience over the standard S9.

Holy Sepulchre closed in protest against new taxMar 01, 2018 - 12:58
Worshippers stand in front of the closed doors of the Church of the Holy Sepulchre in Jerusalem's Old City February 26, 2018. The land bill would allow the state to claim land that was sold by churches to private organizations in recent years.

Rangers Trade Rick Nash to BruinsFeb 26, 2018 - 09:58
In addition to the signing, the team has placed Breen on waivers with the goal of assignment to the Providence Bruins. But if eating cap room for the next two years, get the better prospect than Lindgren to be part of the deal.

Militant attack in Srinagar kills policemanFeb 26, 2018 - 09:34
Earlier, a policeman guarding the Chrar-e-Sharief shrine in Budgam was sacked upon by militants. The terrorists also decamped with his service rifle at Soura area in Srinagar outskirts.